Stelco Holdings Inc. Announces Pricing of Initial Public Offering

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HAMILTON, ON, Nov. 2, 2017 /CNW/ - Stelco Holdings Inc. ("Stelco" or the "Company") announced today the pricing of its initial public offering (the "Offering") of 11,765,000 common shares ("Common Shares") at a price to the public of $17.00 per Common Share (the "Offering Price") for total gross proceeds of $200,005,000.

The Offering is being made through a syndicate of underwriters (the "Underwriters") led by Goldman Sachs Canada Inc. and BMO Capital Markets and includes Credit Suisse Securities (Canada), Inc., J.P. Morgan, Scotiabank, TD Securities Inc., National Bank Financial Inc., and Oppenheimer & Co. Inc. Stelco has entered into an underwriting agreement in connection with the Offering, pursuant to which, among other things, Stelco has granted to the Underwriters an over­-allotment option (the "Over-Allotment Option"), exercisable in whole or in part at any time for a period of 30 days following the closing of the Offering, to purchase up to an additional 1,764,750 Common Shares at the Offering Price for additional gross proceeds of up to $30,000,750 if the Over-Allotment Option is exercised in full.

Stelco has received conditional listing approval of the Toronto Stock Exchange (the "TSX") for the listing of the Common Shares being issued and sold pursuant to the Offering. Listing remains subject to Stelco fulfilling customary TSX requirements. The Common Shares are expected to commence trading on the TSX on an "if, as and when issued basis" on November 3, 2017 under the symbol "STLC". The closing of the Offering is expected to occur on or about November 10, 2017 (the "Closing Date") and is subject to customary closing conditions, including the receipt of all necessary regulatory approvals.

A final base PREP prospectus has been filed with, and a receipt has been issued by, the securities commissions or similar securities regulatory authorities in each of the provinces and territories of Canada containing important information relating to the Common Shares. A copy of the final base PREP prospectus in respect of the offering is available on SEDAR at www.sedar.com.

This press release is not an offer of Common Shares for sale in the United States, and the Common Shares may not be offered or sold in the United States absent registration or an exemption from registration. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States.

About Stelco

Stelco is one of Canada's leading integrated steel companies. It conducts its operations out of two facilities located in Hamilton and in Nanticoke Ontario. These operations produce high quality value-added hot rolled, cold rolled, coated sheet steel products used in the construction, automotive and energy industries across Canada and the United States.

Forward-Looking Information

Certain statements contained in this press release contain "forward-looking information" ("forward-looking statements") within the meaning of Canadian securities laws, including statements regarding the completion of and expected closing date of the Offering and the expected trading date of the Common Shares. These forward-looking statements represent the Company's expectations or beliefs concerning future events, and it is possible that the results described in this press release will not be achieved. These forward-looking statements are subject to risks, uncertainties and other factors, including changes in general economic and/or market conditions, material changes in the business or affairs of the Company and conditions to closing the Offering, many of which are outside of the Company's control, which could cause actual results to differ materially from the results discussed in the forward-looking statements.

Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, the Company does not undertake any obligation to update or revise any forward looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict all such factors. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Company's final base PREP prospectus filed with the applicable Canadian securities regulatory authorities in connection with the Offering. The risk factors and other factors noted in Company's final base PREP prospectus could cause actual events or the Company's actual results to differ materially from those contained in any forward-looking statement.